Starting Up A New Business: 5 Reasons Why Location Is So Important

You've probably heard the saying in real estate, "location, location, location." There's a reason why real estate agents are so concerned about location. The location of a commercial building or residential property can greatly affect its value. What's more, the location of a commercial property may make or break the business that's housed in it. So, if you're looking for commercial properties for your new business, you have to get the location right. Following are five reasons why your building's location is vital for your business. 

Target Market

You always want to strategically place your business in an area where you can easily attract your target market. If you sell farming supplies, placing your store in an urban area wouldn't make much sense. However, placing it in a small town that farmers frequent would. Before choosing a location, consider your customer base. Where do they shop? What types of neighborhoods do they prefer? 

Labor Market

If you plan to hire a lot of employees, you should make sure that there are enough people living in and around the area where you want to place your business. If you need skilled workers, you should do some research on how many skilled workers are in your area as well. Also, pay attention to what other employers are paying their employees. If you have a low payroll budget, you might not be able to attract workers who are used to making more money. 

Future Growth

If you plan to grow, look for properties that have growth potential. Purchase a property that has extra land or extra warehouse space so you can easily grow in pace with future demands. 

Zoning Regulations

Certain types of business can only locate in certain areas due to zoning regulations. Make sure that you can operate in any given location by contacting the city or municipality where you plan on establishing your business. 

Hidden Costs

Taxes and shipping costs along with costs for renovations and upgrades can suck a lot of money out of your annual budget. Be sure to factor in all costs when purchasing property. Hidden costs, if they are not planned for, may make it difficult for you to stay afloat.

As you can see, there are many reasons why location is vital for your business. If you don't know what locations are perfect for your business, talk to a real estate agent like one from NAI Capital that knows your area.